Turkey

On Thursday, August 30, 2018, Argentina’s peso has hit its lowest record, while the central bank announces to increase interest rate from 45% to 60%, the highest rate in the world. Today, August 31, 2018, Indonesia’s rupiah has fallen to a two-decade low since 1998 Asian crisis. The rupiah is down 7.8% this year. Meanwhile, Turkey remains the center of the attention as nations are trying to come up with a solution to help digging Turkey out of its economic crisis, especially European nations that would like to help their NATO partner. However, it is still debating whether a financial aid would be provided to Turkey as President Recep Tayyip Erdogan, who is known as “enemy of interest rates”, has ruled out approaching the IMF support. Turkey lira plunges 38% in a year, and the number may go even higher if the situation continues as it is. Germany is biggest economic partner and home to several million residents with Turkish roots. Turkey also ranks 16th among German export markets, ahead of Japan and many smaller European Union countries. As their economic relationship goes, Germany is considered to be the savior of Turkey crisis despite the dispute on Turkey’s detention of German citizens and German criticism of President Tayyip Erdogan’s security crackdown after a failed coup in 2016. The agenda to discuss an aid is due to be on a meeting of German and Turkish finance and economy ministers next month, which Turkey must survive until then in order to possibly find a solution to their crisis. However, Turkey could also turn to Russia or China, and Qatar is yet another option. Ankara and Doha see eye to eye on many issues, and Qatar has already declared that it will invest $15 billion (€13 billion) in Turkey in the form of economic projects and deposits.